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Bitcoin is the first cryptocurrency that enjoys global recognition. Unlike traditional money that is backed and recognised by the government that prints it, Bitcoin is operated independently. These days, more and more companies are accepting Bitcoin a method of payment. Also, Paychainand many other exchanges are operating to help investors get started with Bitcoin acquisition. But, is Bitcoin safe?
Why Bitcoin is Safe
Here are some reasons why Bitcoin is a safe investment.
- It is Encrypted and Secure. The digital currency is encrypted and supported by a special system known as blockchain. The system uses volunteers to work together to encrypt the transcriptions that take place on the Bitcoin system. It ensures all personal information is stored away from any spying eyes.
- Transactions are Transparent. This means that all transactions involving Bitcoin are available to the public even if users are anonymous. Thus, nobody can scam, cheat, or fraud the system. Also, because of the irreversibility of the transactions, the money won’t be taken back.
- It is Decentralised. There are many Bitcoin servers across the globe and at least ten thousand nodes monitoring all transactions on the Bitcoin system. Thus, if something happens to one of these servers or nodes, the others can quickly pick up the slack.
Can Bitcoins Be Stolen?
Even if Bitcoin is secure on a system level, hackers can still steal the coins from individuals. That is why Bitcoin owners should take steps to secure their holdings. Below are some ways their bitcoins can get stolen:
- Phishing. Fake websites could trick Bitcoin owners into sharing their login details with hackers. These criminals will drain their Bitcoin wallet dry.
- Spoofing. This a traditional form of scam where people pretend to sell something, take their payment, and refuse to deliver their offer.
- Malware. Many malware targets Bitcoin and Bitcoin wallets. When they get into one’s system, hackers will access and steal precious coins.
- Wallet key theft. There is always a possibility that wallet keys can be stolen from cold storage. With cold storage, private keys to the wallet are stored in a USB-like device that is not connected to the internet.
To avoid phishing and malware, it’s important for Bitcoin investors to have a good antivirus. Also, they just have to use their common sense and use only reputable vendors to avoid spoofing. And those who are wondering whether or not to use Bitcoin should make their own decision. It’s just important to keep in mind that Bitcoin is not perfect.